Eamon Scanlon (Sligo-Leitrim, Fianna Fail)

I welcome these statements on this important sector. Recent years have been extremely challenging for the haulage and road freight sector. In my own area of south Sligo, there are three haulage companies operating: O'Dowd's Haulage in Gorteen, which employs 60 people and uses 20 trucks; Stephen Mullen's haulage company in Tubbercurry, which employs 55 and has 25 trucks; and Strandvaus in Collooney, which employs 97 people and operates 40 vehicles. When you listen to those companies, you hear the reality of the escalating costs of operations over the past five years. Since 2020, the cost of equipment has increased by 40%, taxes on fuel have risen by 89.56% and the cost of CVR testing has increased by 19%. Tolls have also risen by 13%. In addition, the minimum wage has increased by 39% with employer's PRSI increasing by 41%. Cumulatively, these compounded costs for companies have reached nearly €50,000. Such a financial burden threatens their very viability, transforming what should be a competitive marketplace into one of unsustainable expenses.

The situation is not isolated. It is a reflection of broader trends affecting many transport companies across Ireland. Many of these businesses are operating on razor-thin margins or, worse, at a loss. The Irish transport sector is the backbone of our national economy, ensuring the movement of goods, services and essential supplies across the length and breadth of the country. Without a functioning and healthy transport sector, we risk crippling our economic resilience and the livelihoods of the countless families who depend on these jobs.

I welcome the programme for Government commitment to support the decarbonisation of road freight and commercial coaches through the introduction of alternative fuels such as hydrotreated vegetable oil, hydrogen and biomethane.

The taxation of HVOs used for commercial freight is a step in the right direction towards sustainable transport solutions. While these initiatives are welcome, we can and must do more to alleviate the tax burden on the transport industry, particularly in relation to fuel. The rising costs associated with these essential elements of our transport infrastructure are unsustainable. In 2022 and 2023, two temporary haulage support schemes were initiated by the Department of Transport, which provided much-needed financial relief to the sector. In those two years alone, €15.6 million was disbursed to a combined total of 5,900 operators. This represented approximately 81% and 74%, respectively, of the road haulage operators licensed in the State. While these figures are encouraging, many operators still face significant challenges. Fortunately, diesel prices have receded from the peaks witnessed in the latter half of 2022. The diesel rebate scheme in place since 2013 is available for licensed haulage operators with vehicles over 7.5 tonnes. With diesel prices over €1.43 per litre, including VAT, the maximum rebate of 7.5% per litre is available. However, the take-up of the scheme has room for improvement. In 2024, only 45% of licensed road haulage operators availed of it. There is something wrong there. I do not know whether the hauliers are not getting the information or why the take-up is so low. According to data from the Revenue Commissioners, there were 1,918 applicants for the scheme in 2024, a decline of 2% on the previous year. This indicates we must work harder to ensure operators are well informed and able to access the supports intended for them.

I reiterate the importance of our haulage and road freight sector. While the Government has taken some steps to mitigate the costs incurred by operators, more has to be done to support the sector in maintaining its competitiveness and to ensure a resilient logistics network that can effectively meet the demands of our ever-evolving market.

Roads have been mentioned this evening. It is crucial these main roads are improved. I am talking about the N17, N15 and N16. It is very important to Sligo and the whole region that these roads are upgraded to be suitable for the traffic that is on them.

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